Part i. design and make a workbook in excel to compare the purchase versus lease of an automobile. the car the company wishes to purchase is $18,400. monthly net income (after taxes) is $3,024. you need to decide whether to lease the car over three years or buy the car with the aid of a bank loan for $18,400. design and make your solution using excel. format your workbook attractively and appropriately based on professional design principles learned in this course. you must use proper functions and formulas for all calculations. name the worksheet vehicle purchase analysis. be sure your calculations support your conclusions. save your file as exam iii item 1.
the following information is provided:
a. if the company was to lease the vehicle with zero down, the lease payment would be $355 per month. at the end of the three years, there is an option to buy the vehicle for $12,000. what would be the total cost to own the vehicle at the end of three years?
b. if the company was to purchase the vehicle with the aid of a bank loan with zero down for three years (interest rate is 7%), what would the monthly payment be? what would be the total cost to own the vehicle at the end of three years?
c. how much would the company pay, over and above the price of the vehicle, for each option?
d. what do you recommend as the best financial alternative: purchase or lease? which option would you recommend the company choose and why? what other factors should be considered in the decision other than cost?
make an attractive chart to illustrate your financial findings. be sure to use appropriate labels. which chart type did you choose and why?